Bitcoin bulls are showing renewed conviction as the flagship cryptocurrency finally climbs above the short-term holders’ realized price, hinting at a potential shift from sellers’ dominance to buyer-driven momentum.
On-Chain Signals Turn Green
After several murky weeks fraught with sideways trading and liquidation events that saw Bitcoin struggle to hold key support levels, the short-term holder realized price line has been breached. This metric, representing the average cost basis for coins moved within the last 155 days, acted as an invisible ceiling that capped gains for most of the recent trading sessions.
Finally transcending this cost basis suggests that a large cohort of traders who accumulated at lower levels are regaining profit confidence, alleviating the immediate sell pressure that had weighed on price action.
Technical Charts Point to Upside
From a technical standpoint, the breach of the realized price is reinforced by a break above the 50-day moving average on the daily chart, a classic sign of building bullish momentum. Relative Strength Index (RSI) readings, having risen above 60, indicate that buying interest is picking up steam without being overextended.
Many traders view this cluster of indicators as a green light for a rally towards the next resistance zone, which sits around the 120,000 level on the realized price spectrum.
What Traders Are Watching
Short-term momentum players will be closely monitoring Bitcoin’s trading volume to see if it can sustain a daily uptick above its recent average. A spike in volume concurrent with price gains would signal genuine demand rather than a short-lived technical bounce.
Additionally, market participants are eyeing the long-term holder realized price, currently positioned near 100,000. A potential retest of that zone as new support could underpin a more durable bullish phase, buoyed by holders less likely to sell at a loss.
Outlook and Next Moves
Should Bitcoin maintain its new foothold above the short-term realized price, the path toward a re-challenge of 120,000 becomes more plausible. In contrast, a failure to hold could reignite bearish sentiment and push price back into consolidation around the 100,000–105,000 range.
Ultimately, the unfolding narrative will hinge on whether buyers can keep up the momentum or if sellers step back into the fray. For now, the breach of the STH realized price marks a welcome shift, signaling that bulls may be regaining control after weeks of uncertainty.